Tesla lost 11,000 euros (Rs. 8.77 lakh) on every car it sold while Bentley was hit the worse with 17,000 euros (Rs. 13.55 lakh)
The common perception is that carmakers get profited based on the segments they compete their cars in. Higher up the price range is the maximum profitability would be and luxury brands reap the most benefit out of it. However, it does not always turn out to be the case as a German economics professor found out in a study conducted by him.
Ferdinand Dudenhöffer assessed the average profit gained by each car belonging to the luxury automakers in the opening half of 2018 and some results were surprising to say the least. According to him, Ferrari made an average of 69,000 euros (Rs. 55.03 lakh) for every car it retailed.
No surprises here, as Ferrari always prices its machines on the higher side and the ensuing personalisation from customers would increase the selling price even further. Slotting in at second position was Porsche with an average of 17,000 (Rs. 13.55 lakh) euros for every car it sold in H1 2018.
The German sportscar maker is profitable than its fellow statesmen Audi, BMW and Mercedes-Benz with an earning of around 3,000 euros per vehicle. Maserati is another Italian brand having made the list with profit of 5,000 euros (Rs. 3.98 lakh) on each car it sold, while Jaguar Land Rover managed just 800 euros (Rs. 63,800) operating profit according to the study.
Tata Motors reported consolidated net loss of Rs. 1,902.4 crore in Q1 FY2019. Despite posting net profit of Rs. 3,199 crore during same quarter last year, it was hit by losses endured at Jaguar Land Rover due to higher raw material costs, duty reduction in China and diesel woes in the UK and Europe.
The surprising part of the study laid in losses faced by Tesla and Bentley. The American electric car manufacturer lost 11,000 euros (Rs. 8.77 lakh) for every car it sold while Bentley was hit the worse with 17,000 euros (Rs. 13.55 lakh), said the study.